oh my, a profit
Repap Enterprises Inc. Reports Second Quarter 2000 Results
STAMFORD, Connecticut, July 27 /CNW-PRN/ - Repap Enterprises Inc. today
reported its results of operations for the second quarter ended June 30, 2000.
Continuing strong operating performance and solid shipments in all product
lines as well as higher prices for coated paper and pulp resulted in improved
financial results. EBITDA(1) increased by 16% to $49.3 million compared to
$42.6 million in the first quarter of 2000 and by 78% from the second quarter
1999 EBITDA of $27.7 million. Repap reported a net income of $0.6 million in
the second quarter compared to a loss of $12.5 million in the first quarter of
2000 and a loss of $13.5 million in the second quarter of 1999.
Revenues were $183.7 million, up 29% or $41.3 million from revenues of
$142.4 million in the second quarter of 1999. The increase in revenues is
attributable to improved coated paper and pulp markets. Shipments of paper
increased 12,000 tons or 11% over the second quarter of 1999 and corresponding
revenues increased by $32.6 million or 26% to $157.0 million over the same
period last year. Pulp shipments increased 10,000 metric tons or 63% over the
second quarter of 1999 and revenues increased by $8.1 million or 65% to
$20.5 million over the same period. Lumber revenues were relatively flat at
$6.2 million.
Revenues were also up over the first quarter of 2000, increasing by
$8.4 million or 5% quarter over quarter. Paper revenues increased by
$3.7 million reflecting a 5% improvement in average prices offset somewhat by
slightly lower shipments. Pulp revenues increased by $3.8 million reflecting
continuing improved pricing and higher shipments.
Repap generated EBITDA of $49.3 million in the quarter, up $6.7 million
from the first quarter of this year and up $21.6 million from the second
quarter of 1999. The increase from the first quarter is attributable mainly to
the favorable impact of the price increase on coated groundwood paper
implemented in April 2000.
Repap recorded a net income of $0.6 million in the quarter compared to a
loss of $12.5 million ($0.02 per share) in the first quarter of 2000 and a
loss of $13.5 million ($0.02 per share) in the second quarter of 1999. Note
that the results of the second quarter of 2000 included an amortization charge
for non-cash currency hedging losses incurred in 1992 of $1.9 million compared
to a charge of $9.4 million in the first quarter of 2000 and $1.7 million in
the second quarter of 1999.
Commenting on the results, Mr. Stephen Larson, President and Chief
Executive Officer, said, ``We are pleased with the continued progress in our
operating and financial performance. Second quarter production reached the
same record-breaking level achieved in the first quarter and this, along with
solid coated groundwood paper and kraft pulp markets and improving prices, has
enabled Repap to report its first positive quarterly net income to
shareholders since 1995. Demand for coated paper is good and a solid order
book is developing for the second half of the year.''
SIX MONTH RESULTS
Revenues for the six months ended June 30, 2000 were $359.0 million, up
18% from revenues of $305.0 million recorded in the same period of 1999.
EBITDA for the first half of 2000 was $91.9 million, up 38% over the $66.7
million reported in the first half of 1999 and the net loss was $11.9 million
compared to a loss of $22.8 million last year. This year's results include an
$11.3 million charge for non-cash currency hedges incurred in 1992 compared to
$2.9 million in 1999. These improved financial results reflect the impact of
stronger market conditions in all product lines, year over year.
Repap Enterprises Inc. is a major producer of coated groundwood paper
with 9% of North American capacity. This high quality paper is utilized in
magazines, catalogs, inserts and commercial printing applications. The
Company's world-class coated paper complex in New Brunswick has two modern
paper machines with a design capacity of 492,000 tons, a northern bleached
softwood kraft pulp mill with an annual capacity of 235,000 metric tons, an
integrated groundwood pulp mill with an annual capacity of 123,000 metric tons
and lumber operations with an annual capacity of 58 million foot board
measure.
All figures are reported, unless otherwise noted, in Canadian dollars and
under accounting principles generally accepted in Canada. |
